When an economist states that "price changes cause quantity changes ceteris paribus", she is stating that price changes cause quantity changes
A) always.
B) all else equal.
C) only in theory.
D) only in efficient markets.

Question

Quizplus · Accepted Answer

The term "ceteris paribus" is a Latin phrase meaning "all else equal." It is used in economics to indicate that only the specified variables (in this case, price changes) are considered, while all other potential influencing factors are held constant.

When an Economist States That "Price Changes Cause Quantity Changes